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Lockheed Martin Uses AI to Strengthen PAC-3 Defense System
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Key Takeaways
Lockheed Martin is enhancing its PAC-3 MSE with AI and machine learning for smarter defense.
The AI-driven system detects, tracks, and responds faster while adapting to evolving threats.
The company is expanding AI use across defense platforms to boost accuracy and efficiency.
Lockheed Martin Corporation (LMT - Free Report) is enhancing its PAC-3 Missile Segment Enhancement (“MSE”) system by using artificial intelligence and machine learning. The company aims to make its air and missile defense systems faster, smarter and more effective against modern threats.
With AI-driven control and management, the PAC-3 MSE can detect, track and respond to targets more quickly. It can also adjust in real time to changing threat patterns, improving both accuracy and decision-making on the battlefield.
Lockheed Martin is also expanding its use of AI across other defense systems. This will help improve how quickly threats are identified and handled while making better use of available resources. These efforts reflect the company’s goal of giving warfighters a stronger and more reliable defense advantage.
Importance of AI
Artificial intelligence is growing rapidly as technologies like machine learning and computer vision change how industries operate. With the rise of digital tools, there is a greater need for AI to manage large amounts of data and provide accurate insights. As technologies such as the Internet of Things and 5G continue to expand, AI is becoming even more important.
In the defense sector, AI is being used to improve surveillance, strengthen security and support faster decision-making in complex situations. It also helps in developing autonomous systems, detecting threats and analyzing battlefield data in real time to improve overall response and efficiency.
Other Stocks to Watch
Other defense companies that are likely to enjoy the perks of the expanding AI market are discussed below.
Northrop Grumman Corporation (NOC - Free Report) : In June 2025, the company expanded its use of NVIDIA technology to advance AI-driven space operations. The company will use NVIDIA’s Omniverse and Isaac Lab to develop robotics for spacecraft docking, servicing and on-orbit repairs. It also plans to apply AI across all mission phases to automate commands and improve spacecraft efficiency.
NOC’s long-term (three to five years) earnings growth rate is 3.85%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) indicates a year-over-year decline of 2.7%.
RTX Corporation (RTX - Free Report) : In June 2025, RTX signed a 10-year Memorandum of Understanding with Singapore’s Economic Development Board. Through this deal, RTX gains a strategic foothold and institutional backing in a key innovation hub, which can accelerate its AI ambitions in multiple ways.
RTX’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 3.7%.
AeroVironment (AVAV - Free Report) : In May 2025, AVAV completed the acquisition of BlueHalo. AeroVironment's position in defense and allied industries is strengthened by the acquisition of BlueHalo, which greatly expands its AI, autonomy, and cutting-edge technology capabilities.
AVAV’s long-term earnings growth rate is 16.23%. The Zacks Consensus Estimate for fiscal 2026 EPS indicates a year-over-year increase of 4.6%.
LMT Stock’s Price Performance
In the past three months, shares of the company have risen 7.1% compared with the industry’s 4.8% growth.
Image: Bigstock
Lockheed Martin Uses AI to Strengthen PAC-3 Defense System
Key Takeaways
Lockheed Martin Corporation (LMT - Free Report) is enhancing its PAC-3 Missile Segment Enhancement (“MSE”) system by using artificial intelligence and machine learning. The company aims to make its air and missile defense systems faster, smarter and more effective against modern threats.
With AI-driven control and management, the PAC-3 MSE can detect, track and respond to targets more quickly. It can also adjust in real time to changing threat patterns, improving both accuracy and decision-making on the battlefield.
Lockheed Martin is also expanding its use of AI across other defense systems. This will help improve how quickly threats are identified and handled while making better use of available resources. These efforts reflect the company’s goal of giving warfighters a stronger and more reliable defense advantage.
Importance of AI
Artificial intelligence is growing rapidly as technologies like machine learning and computer vision change how industries operate. With the rise of digital tools, there is a greater need for AI to manage large amounts of data and provide accurate insights. As technologies such as the Internet of Things and 5G continue to expand, AI is becoming even more important.
In the defense sector, AI is being used to improve surveillance, strengthen security and support faster decision-making in complex situations. It also helps in developing autonomous systems, detecting threats and analyzing battlefield data in real time to improve overall response and efficiency.
Other Stocks to Watch
Other defense companies that are likely to enjoy the perks of the expanding AI market are discussed below.
Northrop Grumman Corporation (NOC - Free Report) : In June 2025, the company expanded its use of NVIDIA technology to advance AI-driven space operations. The company will use NVIDIA’s Omniverse and Isaac Lab to develop robotics for spacecraft docking, servicing and on-orbit repairs. It also plans to apply AI across all mission phases to automate commands and improve spacecraft efficiency.
NOC’s long-term (three to five years) earnings growth rate is 3.85%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) indicates a year-over-year decline of 2.7%.
RTX Corporation (RTX - Free Report) : In June 2025, RTX signed a 10-year Memorandum of Understanding with Singapore’s Economic Development Board. Through this deal, RTX gains a strategic foothold and institutional backing in a key innovation hub, which can accelerate its AI ambitions in multiple ways.
RTX’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 3.7%.
AeroVironment (AVAV - Free Report) : In May 2025, AVAV completed the acquisition of BlueHalo. AeroVironment's position in defense and allied industries is strengthened by the acquisition of BlueHalo, which greatly expands its AI, autonomy, and cutting-edge technology capabilities.
AVAV’s long-term earnings growth rate is 16.23%. The Zacks Consensus Estimate for fiscal 2026 EPS indicates a year-over-year increase of 4.6%.
LMT Stock’s Price Performance
In the past three months, shares of the company have risen 7.1% compared with the industry’s 4.8% growth.
Image Source: Zacks Investment Research
LMT’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.